The SEMC Capacity Market

Ireland's Capacity Market is a Capacity Remuneration Mechanism (CRM) designed to complement energy-only payments in wholesale electricity markets and to address the “missing money” issue characteristic of wholesale electricity markets. Its purpose is to ensure long-term security of supply by ensuring that investors can recover their long-run marginal costs. Notwithstanding power generation decarbonisation objectives and increasing renewable electricity targets, the intermittent nature of some renewable technologies currently requires that dispatchable (typically fossil fuel) generation remains crucial for system security to ensure security of supply. Ireland’s CRM is designed within the governance framework of the Single Electricity Market (SEM), which operates on an all-island basis covering both Ireland and Northern Ireland.

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